MITEK SYSTEMS INC (MITK)
US6067102003 - Common Stock
Overall MITK gets a fundamental rating of 5 out of 10. We evaluated MITK against 276 industry peers in the Software industry. MITK has an average financial health and profitability rating. MITK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MITK was profitable.
In the past year MITK had a positive cash flow from operations.
MITK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MITK had a positive operating cash flow.
1.2 Ratios
MITK has a better Return On Assets (-0.62%) than 67.88% of its industry peers.
MITK's Return On Equity of -1.17% is fine compared to the rest of the industry. MITK outperforms 70.07% of its industry peers.
MITK has a Return On Invested Capital of 0.93%. This is in the better half of the industry: MITK outperforms 70.44% of its industry peers.
MITK had an Average Return On Invested Capital over the past 3 years of 3.93%. This is significantly below the industry average of 10.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.17% | ||
| ROIC | 0.93% |
ROA(3y)1.57%
ROA(5y)1.76%
ROE(3y)3.27%
ROE(5y)3.01%
ROIC(3y)3.93%
ROIC(5y)N/A
1.3 Margins
MITK's Profit Margin has declined in the last couple of years.
The Operating Margin of MITK (2.67%) is better than 70.80% of its industry peers.
MITK's Operating Margin has been stable in the last couple of years.
MITK has a better Gross Margin (85.71%) than 93.80% of its industry peers.
MITK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.67% | ||
| PM (TTM) | N/A | ||
| GM | 85.71% |
OM growth 3Y0.55%
OM growth 5YN/A
PM growth 3Y-15.46%
PM growth 5YN/A
GM growth 3Y-0.1%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
MITK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MITK has been increased compared to 1 year ago.
Compared to 5 years ago, MITK has more shares outstanding
MITK has a better debt/assets ratio than last year.
2.2 Solvency
MITK has an Altman-Z score of 2.64. This is not the best score and indicates that MITK is in the grey zone with still only limited risk for bankruptcy at the moment.
MITK has a Altman-Z score of 2.64. This is comparable to the rest of the industry: MITK outperforms 56.93% of its industry peers.
MITK has a debt to FCF ratio of 8.86. This is a slightly negative value and a sign of low solvency as MITK would need 8.86 years to pay back of all of its debts.
MITK has a Debt to FCF ratio (8.86) which is in line with its industry peers.
MITK has a Debt/Equity ratio of 0.65. This is a neutral value indicating MITK is somewhat dependend on debt financing.
MITK's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. MITK is outperformed by 65.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.86 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.1
WACC9.07%
2.3 Liquidity
MITK has a Current Ratio of 4.70. This indicates that MITK is financially healthy and has no problem in meeting its short term obligations.
MITK has a better Current ratio (4.70) than 87.96% of its industry peers.
A Quick Ratio of 4.70 indicates that MITK has no problem at all paying its short term obligations.
MITK's Quick ratio of 4.70 is amongst the best of the industry. MITK outperforms 87.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.7 | ||
| Quick Ratio | 4.7 |
3. Growth
3.1 Past
The earnings per share for MITK have decreased strongly by -20.41% in the last year.
Measured over the past years, MITK shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.78% on average per year.
The Revenue has been growing slightly by 5.09% in the past year.
MITK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.09% yearly.
EPS 1Y (TTM)-20.41%
EPS 3Y12.34%
EPS 5Y26.78%
EPS growth Q2Q-54.84%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y19.43%
Revenue growth 5Y22.09%
Revenue growth Q2Q-19.22%
3.2 Future
The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
MITK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.87% yearly.
EPS Next Y8.44%
EPS Next 2Y12.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.94%
Revenue Next 2Y8.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.31, MITK is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 89.42% of the companies listed in the same industry.
MITK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.20.
Based on the Price/Forward Earnings ratio of 10.51, the valuation of MITK can be described as reasonable.
MITK's Price/Forward Earnings ratio is rather cheap when compared to the industry. MITK is cheaper than 94.53% of the companies in the same industry.
MITK is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 82.85% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MITK is valued a bit cheaper than the industry average as 70.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.83 | ||
| EV/EBITDA | 23.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MITK does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as MITK's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)1.93
PEG (5Y)0.61
EPS Next 2Y12.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MITK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MITEK SYSTEMS INC
NASDAQ:MITK (4/26/2024, 2:21:07 PM)
12.725
+0.31 (+2.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap595.40M
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 10.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.93
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.67% | ||
| PM (TTM) | N/A | ||
| GM | 85.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.7 | ||
| Quick Ratio | 4.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.41%
EPS 3Y12.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.09%
Revenue growth 3Y19.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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